Replacement for AmEx once Costco relationship ends

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liberate
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Replacement for AmEx once Costco relationship ends

Postby liberate » Wed Feb 18, 2015 8:17 am

Hi all.

I have Discover It ($13.5k) and the AmEx TrueEarnings with Costco ($12k) with a 750 fico. I just learned I'll be losing the utility from my AmEx card next year as the agreement with Costco is ending. I've never experienced this before and I'm looking for advice on what to do. Part of me says I should immediately get another AmEx card (one of the BlueCash for example) or perhaps look into one of the well reviewed Chase or Cap One cards and start building that up. The other part of me says I should just wait for the "benefits" AmEx will supposedly offer to TrueEarnings cardholders (to keep them in the network) and get the new card that Costco will eventually offer if it's good.

Typing it out now it doesn't seem to matter; I could likely do both of my options and be fine. I'll still take any advice though.

Thank you.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...


takeshi
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Postby takeshi » Wed Feb 18, 2015 8:56 am

Not sure what we can offer. We know as much as you do. AmEx and Costco have not officially announced what they will be doing with the TrueEarnings accounts. It's your call if you want to get another card now and we can't make recommendations on what to go for without knowing what you're specifically looking for.

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nismoZtuner
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Postby nismoZtuner » Wed Feb 18, 2015 9:58 am

I read on an article that whoever becomes costco new partner will mostly likely buy out the portfolios from amex.but who knows if amex will agree..
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

augiedog
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Postby augiedog » Wed Feb 18, 2015 10:14 am

You will want the Amex Blue... I promised them not to say why though!
American Express: Blue Cash Everyday (10k), Everyday, ; Discover It (7.3k) ; Target (2.1k)

Citi: Diamond (2k) ; Bank of America: Cash Rewards (2.6k) ; Capital One: Quicksilver (3k) , Sony ; Chase: Freedom (3.7k), Slate (3k), (Amazon) ; Barclay Ring ; Synchrony: Walmart MC, Amazon, Ebates

thom02099
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Postby thom02099 » Wed Feb 18, 2015 10:14 am

It's premature to do anything at this point, until more is known about what each player (Costco and AMEX) plan to do between now and March 31, 2016. Rumours are rampant all over the MF message board, probably elsewhere as well. AMEX could port True Earnings cardholders over to a different card without the user having to do anything. Or the cards could become a standalone without any connection to Costco. The TE cards could be completely shut down and the holders left "holding the bag", so to speak, with no action from AMEX.

From the Costco side, while again the rumours are about Capital One and Chase, it again would be premature to jump on that bandwagon until Costco makes an announcement. Citi has also been mentioned as being in the mix, as well as a potential return to Discover. There's just too many unknowns at this point for a consumer to make any sort of decision. My guess is that Costco will make an announcement relatively soon, as in, within the next couple of months if not sooner.
Retired, and in the process of retiring cards!
EQ = 850 EX=849 TU = 850 as of 07/2017

liberate
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Postby liberate » Wed Feb 18, 2015 10:19 am

takeshi wrote:Not sure what we can offer. We know as much as you do. AmEx and Costco have not officially announced what they will be doing with the TrueEarnings accounts. It's your call if you want to get another card now and we can't make recommendations on what to go for without knowing what you're specifically looking for.


Fair enough. I apologize for not being more specific. I'm just concerned about losing nearly half my utility, and I wanted to know if I need to do something about it now or not. As you said though, nothing has been officially announced about what will happen to the TrueEarnings accounts. If I were to get another card now I think it would be the AmEx Blue Cash Everyday or the Chase Freedom. I'm interested in no annual fee and rewards on the limited spending a graduate student would typically do (gas, groceries, restaurants). The rewards of Chase Freedom seem to complement my Discover It well (as in I'd get 5% back on gas two different quarters in a year), but I do like the American Express card I currently have and the Blue Cash Everyday gives similar rewards. Looking forward I can also see getting whatever new credit card Costco ends up partnering with (spring 2016) and potentially the Amazon Visa card if I make a large purchase (maybe end of 2015) that I want to finance.

Really my goal is to build credit while I finish a PhD program, and I have approximately 3 years left. That's why I said it probably doesn't matter. I could probably get both cards and my credit would be fine by the time I need it for something.

Again, I apologize for the ambiguity. I wasn't quite as awake as I should have been.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

liberate
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Location: Iowa

Postby liberate » Thu Feb 19, 2015 3:28 pm

I ended up going with the Chase Freedom for a variety of reasons (don't yet own a Visa card, rewards, gain reputation with Chase which is apparently a decent bank). If AmEx won't keep my TE account in some way, I'll apply for a card at that point because I'd like to keep an AmEx.

Thanks again for the replies.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

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Vattené
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Postby Vattené » Thu Feb 19, 2015 5:43 pm

Have you looked into the Sallie Mae MasterCard issued by Barclay? 5% back on gas, grocery, and bookstores. There are relatively low monthly caps on cash back ($250, $250, and $750, respectively) but if you have much spending in those categories it can really be beneficial because it's hard to beat that rewards return. I've been eyeing it lately myself just for the gas cash back. I believe it's more difficult to get than a Freedom, but with a 750 FICO (absent any other context) you could have good odds.

Edit - I hadn't refreshed since your last reply, but I'll leave this up in case it interests you.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

Brad Bishop
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Postby Brad Bishop » Thu Feb 19, 2015 6:52 pm

I think, for those of you with the Amex-Costco co-branded card, that you have a pretty good position:
- American Express wants to keep you as a customer
- CostCo wants to keep you as a customer

All that you have to do is sit back and decide what's best for you.

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nismoZtuner
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Postby nismoZtuner » Thu Feb 19, 2015 7:21 pm

Brad Bishop wrote:I think, for those of you with the Amex-Costco co-branded card, that you have a pretty good position:
- American Express wants to keep you as a customer
- CostCo wants to keep you as a customer

All that you have to do is sit back and decide what's best for you.


+1[color="white"]++++++++++++[/color]
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22



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